Which of the following is consistent with competitive long-run equilibrium?
A.) Economic profits are maximized.
B.) Average total costs of production are minimized.
C.) Price equals the maximum of average total cost.
D.) Marginal costs are minimized
B.) Average total costs of production are minimized.
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Assume that the quantity consumed of pizza is dependent on three factors: the price of a pizza, the income of pizza purchasers, and consumers' taste for pizza
When graphing the relationship between the price of a pizza and the quantity of pizza consumed A) the price of a pizza and the income of pizza consumers are the only variables that are allowed to change. B) the price of pizza and quantity consumed of pizza are the only variables that are allowed to change. C) consumers' taste for pizza and the income of pizza purchasers are the only variables that are allowed to change. D) None of the above answers are correct.
Transborder environmental impacts can take place when one country's pollution spills over into a second country in all of the following situations EXCEPT
A) when an upstream user pollutes a shared watershed. B) when industrial production in one country creates acid rain in another country. C) when heavy traffic between two or more countries creates semi-global warming. D) the production of exported products degrades the local environment. E) ozone depletion caused by many countries' pollution spills or emissions.
Assume the United States can use a given amount of its resources to produce either 20 airplanes or 8 automobiles and Japan can employ the same amount of its resources to produce either 20 airplanes or 10 automobiles. The U.S. should specialize in:
a. airplanes. b. automobiles. c. both goods. d. neither good.
When the supply of land is upward sloping,
a. all land owners earn land rents b. the demand for land must intersect it c. all land owners have the same supply price d. different supply prices are generated for different lands e. a rightward shift in demand causes land rents to fall